Replies to post #83601 on Lehman Brothers Financial SA (LEHNQ)

[stockmojo9]

jersey,

Joe could easily work in a Bank as trustee for the CTs.

They think it costs them nothing to delay re-instatement of the CT shares.

They assume Lehman is paying whomever needs to be paid while standing at the Discount Window for 0% money for the last 10 years.

They don't know if there is looting or when it started.

They don't know if there is fraud or when it started.

They use subordination as an excuse to sit on their thumbs.

Aren't they complicit in the fraud?

Aren't they complicit in the looting?

They had a 5-year deferment period after which the Capital Trusts were to be paid.

All interests have been addressed.

They failed and continue to fail.

mojo

[Joe Stocks]

The trustee actually did file under the guarantee. The guarantee is what obligated LBHI to make payments on the debenture. The trustee's obligation is to file a claim for amounts owed once LBHI filed. The creditors committee takes in account the guarantee when establishing how that debt ranks as to priority in receiving payments from the estate.

Read what the prospectus says about the guarantee then tell me why you think the CTs guarantee is superior to that that more senior debt holds.

The guarantee does not cover payments when the trust does not have sufficient funds to make payments on the preferred securities. In other words, if Holdings does not make a payment on the subordinated debentures, the trust will not have sufficient funds to make payments on the preferred securities, and the guarantee will not obligate Holdings to make those payments on the trust's behalf. In addition, Holdings' obligations under the guarantee are subordinate to its obligations under all of its other liabilities.